<span>
for short-term (typically overnight) loans. when the federal reserve
uses open-market operations to sell government bonds</span>
Answer:
The correct answer is $110.
Explanation:
According to the scenario, the given data are as follows:
loan amount = $10,000
Before interest = 8.4%
After interest = 7.3%
So, we can calculate the amount we save in interest can be calculated by using following formula:
Amount of savings in interest = loan amount × difference in interest rate
= $10,000 × ( 8.4% - 7.3% )
= $10,000 × 1.1%
= $10,000 × 0.011
= $110
Hence, the amount we save in interest this year is $110.
Answer:
The answer is $41.67
Explanation:
Po = D1/r - g. This formula is called Discount Dividend Model and it is one of the methods used in valuing company's stock.
Po is the present or current value of the stock
D1 is the next year dividend payment
r is the discount rate
g is the growth rate.
Po = $5.00 /0.16 - 0.04
= $5.00/0.12
=$41.67
Therefore, the current stock price is $41.67
Answer: $537500
Explanation:
The net realizable value of accounts receivable after adjustment will be the difference between the account receivable at December 31st and the expected uncollectible. This will be:
= $600,000 - $62,500
= $537500
Therefore, the answer is $537500
